ACH transactions take one day to become available funds and are a cost-effective
means of collection. An ACH transaction is an electronic funds transfer
that moves through a network of automated clearinghouses that operate
similarly to the Federal Reserve’s Fedwire system but at a fraction of the cost.
For example, a Fedwire may cost $15 and an ACH transaction may cost $0.20.
ACH transactions are typically used for online payments and allow citizens an
alternative payment method. Online payments benefit a local government in
several ways, including reduced staff time needed to provide face-to-face
services, reduced incidences of bad checks, and faster availability of funds.